According to the 2006 Census, in terms of travel to work or study Melbourne has the second highest rate of public transport usage among Australian capital cities with 17.7%, however this is a far distant second to Sydney's 26.3% and only just greater than Brisbane's 17.5%.[2] As of 2009, the share of public transport measured in passenger kilometres is around 11%, with private motor vehicle accounting for 89%.[3] Melbourne has more roadspace per capita than any Australian city and its network of freeways is comparable with cities including Los Angeles and Atlanta[4] and the city is also home to much of Australia's Automotive industry (although Holden, Ford and Toyota will pull out at the end of 2017,[5] 2013[6] and the end of 2017[7] respectively). In 2002, the state government set an "aspirational goal" as part of Melbourne 2030 for this mode share to decrease to 80%, however the Eddington Report released in 2008 concluded that the mode share of private vehicles is likely to stay the same (or increase) to over 90% in 2005.[8] This is despite booming figures for public transport growth in recent years[9] and despite studies into road congestion in 2008, official VicRoads figures showed no growth in car travel on Melbourne's roads,[10] possibly due to roads reaching full capacity.

Melbourne is served by a public transport system integrating rail, tram and bus services. Its extensive tram network is the largest in the world, integrated into both bus and train networks. Almost 300 bus routes and a train system comprising 16 lines service Melbourne, Greater Melbourne and suburban regions. Metropolitan, rural and interstate railway networks link together at Southern Cross Station, in Melbourne's CBD (Central Business District).

A Space Syntax Approach Multiple Centrality Analysis of Melbourne's public transport network (excluding buses which were deemed too inefficient) in 2009, found that approximately 8.8% of the greater urban area and approximately 448,000 residents were serviced within 30 minutes of anywhere in the greater Melbourne area. This concluded that only 10–15% of the residents in Melbourne are serviced by appropriate and timely public transport.

The public transport system in Melbourne carries 7% of all trips within the metropolitan area.[11] In early 2009 this figure increased to 9%, with the share measured in passenger kilometres increasing to 11%.[3]

Since World War II, Melbourne urban form changed to a dispersed city, car-oriented pattern which caused a decline in public transport use by commuters.[12] Yet the old pattern of transport still reflected the Melbourne’s urban form.[12]

A-class Melbourne tram in Swanston Street

In 1999, operation of the city's public transport system was franchised with Government through a dedicated statutory office, the Director of Public Transport, contracting out operation of rail and tram services. In 2006, franchising was estimated to have cost taxpayers $1.2 billion more than if the system had remained publicly operated. With the franchise extensions in 2009, taxpayers will pay an estimated $2.1 billion more by 2010.[13]

Melbourne has an integrated public transport ticketing system through the contactless ticketing system myki. Myki operates on all of Melbourne's Trains (Metro and V/Line), Trams and Buses it requires commuters to "touch-on" and "touch-off" at every entry and exit point.[14] The rollout for myki began on Tuesday 29 December 2009, beginning with Melbourne's metropolitan railway network, and progressively onto trams, buses and regional trains (V/Line). Took over from Metcard as the only valid ticketing system on 30 June 2013.

Myki Replaced the older Metcard as the only valid ticketing system on 30 June 2013.[15] The Metcard system that used Magstrip technology and required to be validated, It also allowed use on all Train, Trams and Buses in the metropolitan system and some regional trains and coaches.

A public bike-hire system came into service in mid-2010. Due to laws requiring all bike users to wear helmets (or face a fine of A$176), usage on the system has been lower than seen in other cities with similar systems. An attempt by the government has been made to rectify this by having helmet vending machines at some of the major bike stations, allowing spur-of-the-moment travel without risking a fine. The success of this is disputed. Public debate about the helmet laws remains ongoing.

As of October 2013, smoking tobacco is prohibited in the sheltered areas of train stations, and tram and bus stops—between 2012 and 2013, 2002 people were issued with infringement notices. The state government announced a plan in October 2013 to prohibit smoking on all Victorian railway station platforms and raised tram stops.[18] This plan was implemented on the 1st of March 2014 prohibiting smoking at all metropolitan public transport infrastructure.[citation needed]

The bus network is run by several bus companies (approximately 50) under a franchise from the State Government. There are approximately 300 routes in operation with a varying range of service frequencies. A NightRider bus system operates on Friday and Saturday nights, and a Smart Bus orbital bus network is being set up, which is intended to facilitate cross city travel, while the current network is predominantly a radial network. All of the buses in Melbourne use the Myki ticketing system. The Skybus Super Shuttle is a non-Myki based airport bus service. In addition, several local government councils operate free local community bus services within their local areas.

Melbourne has the world's largest tram network, consisting of 245 kilometres of track, nearly 500 trams on 28 routes, and 1,813 tram stops. Two light-rail routes are also a part of the tram network. The tram network is a part of the Public Transport Victoria network and a part of the Myki ticketing system.

The tram network is operated by Keolis Downer, a private company trading as Yarra Trams after winning a contract to run the tram network from a company trading under the same name. Trams operate on many of the major roads in the inner suburbs, but only some trams operate on roads in middle and outer suburbs.

Heritage trams operate on the free City Circle route, intended for visitors to Melbourne, and privately run Colonial Tramcar Restaurant trams travel through the city during the evening.

Melbourne's metro train network is operated by Metro Trains Melbourne, a private company, which took over from Connex Melbourne on 30 November 2009.[19] The rail network consists of 16 railway lines and is a part of the Metro network and a part of the Myki ticketing system. Several sections of lines which are part of the V/Line network and which fall into the metropolitan area are also covered by Myki.

With the exception of the Stony Point line and the greater metropolitan lines served by V/Line, the rest of the suburban railway network is electrified and services are operated by a fleet of 326 EMU trains.

Melbourne uses an integrated Public Transport system covering all modes of transport (Train, Bus, Tram) that is divided into 2 Zones (excluding the newly introduced free tram zone covering the CBD and some surrounding areas.)

Myki allows for 2 forms of tickets, either Myki-money that allows money to be loaded onto a Myki and let the system select the "best fare" and the Myki-pass where commuters must pre buy tickets (or passes). For regular travels the Pass system can work out cheaper.

The Port of Melbourne is Australia's largest container and general cargo port.[23] Regular shipping lines operate to around 300 cities around the world and 3200 ships visit the port each year. The Port of Melbourne is located in the inner west of Melbourne, near the junction of the Maribyrnong and Yarra rivers.

Melbourne also has an extensive network of railway lines and yards to serve freight traffic. The lines are of two gauges – 5 ft 3 in (1,600 mm) broad gauge and 4 ft 81⁄2 in (1,435 mm) standard gauge, and are not electrified. In the inner western suburbs of the city, freight trains have their own lines to operate upon, but in other areas trains are required to share the tracks with Metro Trains Melbourne and V/Line passenger services. The majority of freight terminals are located in the inner suburbs about the Port of Melbourne, located between the Melbourne CBD and Footscray.

Melbourne's second major passenger airport, Avalon Airport (Melbourne Avalon), is south-west of Melbourne, and north-east of Geelong. Avalon Airport is primarily used by Jetstar and operates flights to Brisbane, Sydney and Perth. AirAsia X was expected to commence flights from Avalon to Kuala Lumpur in October 2009, providing a low-cost service. This provides Melbourne with a second international airport, unique among all capital cities in Australia.

Moorabbin Airport is located to the south of Melbourne, and is primarily used for recreational flying and for flying lessons. Moorabbin is also used for a small number of regional airline services, most notably to King Island, Tasmania. Moorabbin is a GAAP airport and its code is YMMB.

Motor vehicles are the predominate travel mode, as a result the freeways and roads in Melbourne are critically congested during peak hours. Many residents are car dependent due to minimal public transport outside of the inner city – the city is one of the most car-dependent cities in the world. The freeway network is the largest of any Australian city,[1] with an extensive grid of arterial roads; the locations of which date back to the initial surveying of the city.

The beginnings of the freeway network was the 1969 Melbourne Transportation Plan, which included a grid of freeways that would cover the entire metropolitan area. In 1973 these plans were reviewed, with a large number of inner city projects deleted.

2008 saw the construction and opening of the EastLink radial freeway, as well as further extensions of existing freeways.

Despite government figures slowed growth in road travel since 2006 and zero growth in 2008/09[26] and the government's goal to reduce road use to 80% of all motorised trips, the State government announced a massive road infrastructure investment, continuing to complete some of the road projects from the 1969 Transport plan including Peninsula Link, East West Link and North East Link.

Melbourne has an extensive network of bicycle paths and bicycle lanes on roads. These paths are used for both recreation and for commuting.

Around two per cent of all journeys in Melbourne are made by bicycle.[citation needed]

On 31 May 2010 the first public bicycle sharing system in Australia was launched in Melbourne.[27] On completion the system will consist of 50 docking stations with 600 bikes, situated around the Melbourne CBD.[28]

Taxis in Melbourne are regulated by the Taxi Services Commission which commenced that role on 1 July 2013[29][30] and began operation on 19 July. The inquiry is resulting in major reforms to Victoria's taxi industry and have far reaching impacts on taxi services in Melbourne and beyond.[31] They are required to be painted canary yellow, but since October 2008 those that can operate at peak times, at night and at special events only must have green tops. Taxis operate and charge on a meter. There are 4,660 licensed taxis in Melbourne (including 443 wheelchair-accessible taxis).[32]

The prime transport statute in Victoria is the Transport Integration Act. The Act establishes and sets the charters of the state agencies charged with providing transport services and managing the state's transport system. The Department of Transport is the agency responsible for the integration and coordination of Victoria's transport system and decision makers. The other key state agencies are –

A new Victorian Government was elected in late November 2010. There have been a number of significant organisational changes made by the Government through substantial change to the Transport Integration Act.

A key policy of the Government leading into the election was to create a Public Transport Development Authority (PTDA). The Government positioned the VTDA as an agency which is independent and which will coordinate all aspects of public transport in Victoria.[34][35] The Government indicated that the authority will plan, co-ordinate, manage and administer metropolitan trams, buses and trains, regional trains and buses, replacing the current structure of multiple agencies. The body was established in late 2011[36] and is expected to be fully operational by mid-2012.[37] Planning for the Melbourne Airport, Rowville and Doncaster rail lines may be overseen by the new transport authority.[38][39] The PTDA or Public Transport Victoria is now fully operational and has fully taken over the rail, tram and bus responsibilities of the Director of Public Transport and the activities of the Transport Ticketing Authority and MetLink which have each been abolished.

The Government reversed the merger of the Port of Melbourne Corporation (PMC) and the Port of Hastings Corporation which occurred in late 2010. Ports Minister, Dr Denis Napthine, devised a new agency, the Port of Hastings Development Authority, oversee the development of the port of Hastings as a competitor in container trade to the PMC.[41] Legislation for this purpose was passed by the Victorian Parliament[42] towards the end of 2011 and the authority commenced operation on 1 January 2012.

The safety of rail operations in Melbourne is regulated by the Rail Safety Act 2006 which applies to all commercial passenger and freight operations as well as tourist and heritage railways.[43] The Act creates a framework containing safety duties for all rail industry participants and requires rail operators who manage infrastructure and rolling stock to obtain accreditation prior to commencing operations. Accredited rail operators are also required to have a safety management system to guide their operations. Sanctions applying to the safety scheme established under the Rail Safety Act are contained in the Transport (Compliance and Miscellaneous) Act 1983.[44]

Rail, bus and marine operators in Victoria can also be the subject of no blame investigations conducted by the Chief Investigator, Transport Safety or the Australian Transport Safety Bureau(ATSB). The Chief Investigator is charged by the Transport Integration Act[45] with conducting investigations into rail, bus and marine safety matters including incidents and trends. ATSB, on the other hand, has jurisdiction over rail matters only where they occur on the Designated Interstate Rail Network, marine matters if the ships are under Commonwealth or AMSA regulation and bus safety matters by invitation of the jurisdiction.

Ticketing requirements for rail, tram and buses services in Victoria are mainly contained in the Transport (Ticketing) Regulations 2006[46] and the Victorian Fares and Ticketing Manual.[47] Rules about safe and fair behaviour on trains and trams in Victoria are generally contained in the Transport (Compliance and Miscellaneous) Act 1983[48] and the Transport (Conduct) Regulations 2005.[49] Conduct requirements for buses are set out in the same Act as well as the Transport (Passenger Vehicles) Regulations 2005.

Public Transport Corporation and VicRoads established from 1 July in place of the State Transport Authority and the Metropolitan Transit Authority (the PTC) and the Road Construction Authority and the Road Traffic Authority (VicRoads)

1992

New Government elected in October 1992 under Premier Jeff Kennett. Alan Brown appointed as Minister for Public Transport and Bill Baxter as Minister for Roads and Ports.

Ministry of Transport abolished and replaced by the Department of Transport.

various transport administration functions transferred from the Public Transport Corporation to the Secretary of the Department of Transport.

Legislation passed to establish a new statutory office to manage public transport services – the Director of Public Transport – and a new statutory authority, VicTrack, to hold ownership of public transport land and assets

1999

Opening of Western Ring Road

Opening of the Bolte Bridge forming the second major roadway over the Yarra River.

State government commissions the Linking Victoria study and allocates $510 of budget toward the initiatives.[50]

State government commissions Melbourne 2030 planning report aimed at addressing population growth of up to a million new residents also contained recommendations for transport including the expansion major activity centres such as Dandenong and Camberwell with access to public transport and the triplication of the Dandenong line. The document contained a controversial aim of 20% of trips in Melbourne made by public transport by 2020.

Linking Melbourne: Metropolitan Transport Plan released. The report summarised findings from the Inner West Integrated Transport Study, North East Integrated Transport Study, Outer Western Suburbs Transport Strategy, Whittlesea Strategic Transport Infrastructure Study and Northern Central City Corridor Strategy and recommended investment to the tune of $1.5 billion. Much subsequent infrastructure investment. The Southern Cross Station redevelopment (which ran late and over budget), Docklands light rail extension and the Regional Fast Train system were aimed for the Commonwealth Games. The Eastlink freeway was also not in this report.

State government released a $10 billion plan to improve both public transport and roads, Meeting our Transport Challenges. It included the "Think Tram" project aimed at speeding up tram travel times and contained recommendations for a new SmartBus system for the outer eastern suburbs. The Smartbus system had several delays.

Release of the $18 billion Eddington Transport Report, commissioned by the government in 2007 due to revised population growth estimates and increasing congestion problems. The report was aimed at reducing traffic congestion, particularly focused on East-West routes and included a controversial 18 kilometre road tunnel and 17 kilometre rail tunnel and a new rail line from Werribee to Deer Park, Victoria but did not address greenhouse emissions.[56]

Public Transport Minister Terry Mulder announces the Government's intention in March to hold a major inquiry into the taxi industry – the Taxi Industry Inquiry – and the inquiry commences its work in late May headed by Allan Fels.

the Transport Legislation Amendment (Public Transport Development Authority) Act 2011 passed by Victorian Parliament on 27 October thereby empowering the Public Transport Development Authority.

the Port Management Amendment (Port of Melbourne Licence Fee) Bill 2011 introduced into the Victorian Parliament in early December. The proposal involves the levying of a $75 million annual fee to be paid by the Port of Melbourne Corporation to the Victorian Government.

the Port of Melbourne Corporation becomes liable on 1 July 2012 to pay a $75 million indexed licence fee to Government following the commencement of the Port Management Amendment (Port of Melbourne Licence Fee) Act 2012.

^Taxi availability and service is a major issue in Melbourne and Victoria. On 28 March 2011, the Premier Ted Baillieu announced a major inquiry into the taxi sector – the Taxi Industry Inquiry – which is being conducted by the Taxi Services Commission being headed by Professor Allan Fels. Legislation was passed by the Victorian Parliament in late June 2011 to create the Commission.